The residents of Ratilal Mansion, the cessed building in Girgaum, have informed the Bombay High Court that they will redevelop their building through Vardhman Group Realbuild LLP (VGRL). Earlier, the residents had refused to redevelop their building, which has been stalled for over a decade, through the housing and area development authority (MHADA).
The high court had taken suo motu (on its own) cognizance of the plight of tenants of cessed buildings where redevelopment is halted. The HC was hearing a petition by 44 tenants of Ratilal Mansion who have been out of their homes since 2013 and are not being paid transit rent. The redevelopment project was stalled by the developer, Orbit Corporation Limited, which has become insolvent.
Court asks BMC not to insist on a NOC
A division bench of Justices Gautam Patel and Neela Gokhale has asked MHADA and the BMC not to insist on a no-objection certificate (NOC) from the erstwhile developer. The company has now gone into liquidation, and an official liquidator has been appointed.
MHADA advocate PG Lad pointed out that the official liquidator of Orbit Corporation has expressly granted an NOC and has released this property from all claims.
“The authorities will also not demand an NOC from any architects, engineers, surveyors, security guards, other consultants, or staff previously engaged by the Orbit Corporation Limited. Such persons are at liberty to pursue their claims against Orbit or the official liquidator of that company,” added the judges.
Noting that the society has taken an “informed decision” to undertake redevelopment through VGRL, the HC has asked both to apply to MHADA for NOC in favour of VGRL within three weeks. The housing authority has been asked to consider the same in accordance with the law within four weeks thereafter.
Subsequently, the society has to take necessary permissions from the BMC, which the corporation has been directed to decide within six weeks, in accordance with the law. The HC has also asked the BMC to “sympathetically” and “on merit” consider the reduction or waiver of the property tax arrears and removing the attachment on the property for recovery of these dues.
“Since the project has been stalled for a very long time, MHADA and MCGM must endeavour to adhere to these timelines,” added the judges.
